Senate Bill S5289

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5289
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2021
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to providing an  earned  income
   tax  credit  to  youth  workers, increasing the standard deduction and
   providing for the deduction of student loan  interest;  and  providing
   for the repeal of such provisions upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (d-2) to read as follows:
   (D-2)  EARNED  INCOME  TAX  CREDIT  FOR  YOUTH WORKERS. (1) A TAXPAYER
 DESCRIBED IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A  CREDIT
 EQUAL  TO  THE  PRODUCT  OF  ONE  AND THREE-TENTHS AND THE AMOUNT OF THE
 EARNED INCOME TAX CREDIT THAT WOULD HAVE BEEN ALLOWED  TO  THE  TAXPAYER
 UNDER  SECTION  32  OF  THE  INTERNAL  REVENUE CODE, IF THE TAXPAYER HAD
 ATTAINED THE MINIMUM AGE OF ELIGIBILITY FOR SUCH EARNED INCOME TAX CRED-
 IT SET FORTH IN SECTION  32(C)(1)(A)(II)(II)  OF  THE  INTERNAL  REVENUE
 CODE.
   (2)  TO  BE  ALLOWED  A  CREDIT UNDER THIS SUBSECTION, A TAXPAYER MUST
 SATISFY ALL OF THE FOLLOWING QUALIFICATIONS:
   (A) THE TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED  AS  A
 DEPENDENT OF ANOTHER TAXPAYER.
   (B)  THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST NOT
 HAVE ATTAINED THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED  FOR  THE
 EARNED   INCOME  TAX  CREDIT  AS  SUCH  AGE  IS  SET  FORTH  IN  SECTION
 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
   (C) THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT  OF
 A MINOR CHILD OR CHILDREN.
   (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA-
 TIONS  OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME TAX
 CREDIT AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC  PROGRAM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05269-01-1

 S. 5289                             2
 
 LEADING  TO  COMPLETION  OF  A  HIGH SCHOOL DIPLOMA, GENERAL EQUIVALENCY
 DIPLOMA, POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL,  ASSO-
 CIATE DEGREE OR BACCALAUREATE DEGREE.
   (4)  REPORTS.  THE  COMMISSIONER  SHALL  PREPARE A PRELIMINARY WRITTEN
 REPORT AFTER JULY THIRTY-FIRST AND A FINAL WRITTEN REPORT AFTER DECEMBER
 THIRTY-FIRST OF EACH CALENDAR  YEAR,  WHICH  SHALL  CONTAIN  STATISTICAL
 INFORMATION  REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES UNDER
 THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THESE REPORTS SHALL
 BE SUBMITTED BY SUCH COMMISSIONER TO THE GOVERNOR, THE TEMPORARY  PRESI-
 DENT  OF  THE  SENATE,  THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE
 SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS
 COMMITTEE WITHIN SIXTY DAYS OF JULY THIRTY-FIRST  WITH  RESPECT  TO  THE
 PRELIMINARY  REPORT, AND WITHIN FORTY-FIVE DAYS OF DECEMBER THIRTY-FIRST
 WITH RESPECT TO THE FINAL REPORT.  SUCH REPORTS SHALL CONTAIN, BUT  NEED
 NOT  BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH
 CREDITS ALLOWED.  SUCH INFORMATION SHALL INCLUDE THE NUMBER  OF  CREDITS
 AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER
 OF  CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO TAXPAYERS
 IN EACH COUNTY.
   § 2. Subsection (a) of section 614 of  the  tax  law,  as  amended  by
 section  1  of  part JJ of chapter 59 of the laws of 2018, is amended to
 read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred  ninety-six, the New York standard deduction of a resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse  nor  an  individual who is claimed as a dependent by another New
 York state taxpayer shall be seven thousand five  hundred  dollars;  for
 taxable  years  beginning  in nineteen hundred ninety-six, such standard
 deduction shall be seven thousand  four  hundred  dollars;  for  taxable
 years beginning in nineteen hundred ninety-five, such standard deduction
 shall  be six thousand six hundred dollars; and for taxable years begin-
 ning after nineteen hundred  eighty-nine  and  before  nineteen  hundred
 ninety-five,  such standard deduction shall be six thousand dollars. FOR
 TAXABLE YEARS BEGINNING AFTER TWO  THOUSAND  TWENTY-ONE,  THE  NEW  YORK
 STANDARD  DEDUCTION  OF A RESIDENT INDIVIDUAL WHO IS BETWEEN THE AGES OF
 EIGHTEEN AND TWENTY-FOUR AND WHO IS NOT MARRIED NOR THE HEAD OF A HOUSE-
 HOLD NOR A SURVIVING SPOUSE NOR AN INDIVIDUAL  WHOSE  FEDERAL  EXEMPTION
 AMOUNT IS ZERO SHALL BE TEN THOUSAND DOLLARS.
   §  3. Section 615 of the tax law is amended by adding a new subsection
 (h) to read as follows:
   (H) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO  THOU-
 SAND  TWENTY-TWO,  IN  THE CASE OF A RESIDENT INDIVIDUAL, THERE SHALL BE
 ALLOWED AS A DEDUCTION FOR THE TAXABLE  YEAR  AN  AMOUNT  EQUAL  TO  THE
 INTEREST  PAID  BY THE TAXPAYER DURING THE TAXABLE YEAR ON ANY QUALIFIED
 EDUCATION LOAN TO THE EXTENT AND AS  PROVIDED  IN  SECTION  221  OF  THE
 INTERNAL REVENUE CODE.
   § 4. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  or  after  January 1, 2024 and shall expire and be
 deemed repealed December 31, 2029.